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Non-Homestead Operational Millage
Non-Homestead Operational Millage
Scott Akom
Tuesday, October 08, 2019



October 8, 2019

To Whom it May Concern, 

The Board of Education has called for an election to renew the Non-Homestead Operational Millage. The election will take place on Tuesday, November 5 at your normal voting location. (South Branch Township will be consolidating with Slagle Township for the election.)  This is a RENEWAL of a millage approved by the voters in 2014, 2012, 2010, 2006, and 1996.  The district has voter approval to levy up to a maximum of 18 mills on a non-homestead property through December 2019.  The maximum 18 mills that will be levied for the 2019-2020 school year was comprised of the 18.00 of the original mills approved in August 2014.  

This tax is on the non-homestead property and does not apply to your primary place of residence.  The revenue generated from the 18 mills totals approximately $1.3 million annually, greater than approximately 20% of the school district’s budget.  If this millage does not pass, the State will not replace the funding and Mesick Consolidated Schools will be forced to reduce or cut programs to offset the loss.

Please make sure you continue to look for information regarding the operational millage proposal.   If you have any questions regarding the election please feel free to contact me.

Sincerely, 

Scott Akom

Superintendent 

231-885-1200

akoms@mesick.org


Mesick Consolidated Schools 

Non-Homestead Millage RENEWAL

November 5, 2019

The ballot issue will be a Non-Homestead Millage Renewal.  Below are answers to frequently asked questions.

What does “non-homestead” mean?

Non-homestead represents industrial, commercial and some agricultural property and “second homes.”  It does not include a family’s primary residence.

I thought schools no longer received funding through property taxes, so why are they talking about a millage renewal?

Funding for school districts changed significantly in 1993/94 when the Michigan voters passed Proposal A.  Under Proposal A, the State pays the majority of the cost, but to receive full funding, schools must levy 18 mills on all non-homestead property in their district.

School Funding History

Proposal A changed the way Michigan Public Schools are financed.  Previously, local property taxes provided nearly 80 percent of the revenues needed to fund public schools.  When the legislature adopted the foundation approach to funding education in December 1993, three important changes came about:

1.  Property taxes for school purposes were substantially reduced.

2.  Rather than millage rates being applied uniformly on all property, different rates were     

applied to homestead and non-homestead property.  Owner-occupied primary residences were classified as “homestead” property and taxed at six mills.  Non-homestead property generally includes industrial, commercial, and second homes, and is taxed at 12 to 24 mills (six mills base plus 6 to 18 mills, which requires voter approval).

3. The State of Michigan levies a uniform rate of six mills on all property – both homestead and

non-homestead.  The proceeds are deposited in the State School Aid Fund and used as a part of State Aid under the new foundation approach.  Local districts are required to levy 18 mills, with voter approval, on all non-homestead property. These proceeds constitute the local district’s contribution under the foundation approach.

Is this a new tax?

No – this is a RENEWAL of a millage approved by the voters in 2014, 2012, 2010, 2006, and 1996.  The district has voter approval to levy up to a maximum of 18 mills on a non-homestead property through December 2019.  The maximum 18 mills that will be levied for the 2019-2020 school year was comprised of the 18.00 of the original mills approved in August 2014.  

How much will this cost my business?

This renewal will have little effect on your current taxes.  For a business property with a taxable value of $200,000, the tax would cost $3,600 ($200,000 ÷ 1,000 x 18 mills), the same as what you are paying today.

 Will my residential school taxes increase too?

No.  This tax is on the non-homestead property and does not apply to your primary place of residence.

 What if the millage is voted down?

The revenue generated from the 18 mills totals approximately $1.3 million annually, greater than approximately 20% of the school district’s budget.  If this millage does not pass, the State will not replace the funding and Mesick Consolidated Schools will be forced to reduce or cut programs to offset the loss.

 How are Michigan school districts funded?

Districts receive most of their funding on a per-pupil basis.  The amount a school district receives per-pupil is called the Foundation Allowance.  The current per-pupil Foundation Allowance for Mesick Consolidated Schools is $8,111 (2019-2020 Allocation).  This represents the major portion of Mesick Consolidated Schools’ revenue and is funded from 2 sources:  1.) Local Revenue – 18 mills collected on non-homestead property, and 2.) State Revenue.  The Foundation Allowance funding calculation is as follows:

Student Count-         622 (three year average

 Per Pupil Foundation Allowance-   x $8,111(2019-2020 approximate allocation) 

             Total Foundation Allowance- $5,045,042 (approximately)

Zero (0) Mills Collected on Primary Residence $0

18 Mills Collected on Non-Homestead 

Local Revenue   **($1 313,538 approximately)

Amount Paid by the State   $3,731,504 (Total Foundation if 18 mills not collected on Non-Homestead)

**By law, to obtain the Total Foundation Allowance, Mesick Consolidated Schools must collect a local “non-homestead” millage for this portion of its budget.  The State reduces its obligation to districts by this amount and only pays the balance.  

Therefore it is critical to continue to collect 18 mills on a non-homestead property to retain full funding.   If this proposal does not pass, the State of Michigan will not replace the approximated $1,313,538 (approximately 20%) of funding and Mesick Consolidated Schools will be forced to significantly reduce or cut programs to offset the loss.

 Please remember that the non-homestead operating millage will not change the millage rate for owner-occupied residences.

 The Renewal Election for the 18 mills non-homestead property tax is: Tuesday, November 5, 2019 

Please vote at your normal polling location.  

(South Branch Township will be consolidating with Slagle Township for election days.)

QUESTIONS??  Please contact us!

Scott Akom, Superintendent   

Mesick Consolidated Schools

231-885-2727 or akoms@mesick.org